San Francisco State University College Of Business Department Of Accounting

SAN FRANCISCO STATE UNIVERSITY College of Business Department of Accounting Acct. 302.01--Intermediate Accounting II

Summer 2009

Instructor: Mohsen N. Tavakolian, Ph. D, CMA Professor of Accounting & Accounting Information Systems Office: SCI 305 Office Hours: TTH: 1:00 - 2:00 [email protected] Telephone: 338 6391 I. Course Objectives and Advices This course is a continuation of Intermediate Accounting I, Acct.301. The objective is to complete conceptual and procedural framework supporting the measurement and reporting of financial information of published financial statements. Some attention is also given to ethical issues related to accounting practices and international accounting practices where appropriate. Students are expected to study the subject matter of this course with a critical view. Passive acceptance of the textbook material is strongly discouraged. In this course understanding "why” an accounting method is used is as important as learning "how” the method works. Typically, most employers consider a student’s performance in the Intermediate Accounting courses as one of the prime indicators of the student’s aptitude in financial accounting. Students should try to earn as high a grade as they are capable of in this demanding and challenging subject. A high grade in this course should help increase your chances for both attaining employment and passing the financial accounting section of the CPA examination. You should: work a bit harder in this course; not fall behind; organize study groups; get a tutor if necessary, do the homework in-time; ask a lot of questions in the class; study or at least review the terminology of each chapter before its lecture; use the instructor’s office hours for answers to your additional questions; balance your time among your job, your school, and your personal needs such that you can pass this course the first time. In addition, it is strongly recommended that, as soon as possible, you join one or both of the student organizations for accounting majors and be an active member. You could: learn a lot from the activities of these organizations; increase your chances of finding a job after graduation; make some new friends; feel better about being a student. It is a good investment. If you are unable to join these organizations, be sure to attend their free and open professional events. You will gain a lot from these events. Finally, the accounting profession expects its members to conduct themselves with honor, dignity, integrity, and competence in discharging their professional duties and presenting themselves in the workplace. This requires development of a professional style to own attributes such as self-discipline, time-management, patience with details, neatness and organization, and an ability to work with deadlines (i.e. dealing with the time-pressure). You are advised to be considerate of your professional style as you go ACCT 302.02, Summer ‘09

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through your accounting education so you can fine-tune your professional attributes. You are expected to handle the requirements of this course with honesty and integrity. II. Course Prerequisites & Limitations a. Prerequisite. Students must have completed the following prerequisite: ACCT 301 with minimum grade of CStudents MAY NOT take this course if they do not meet the prerequisite requirement. If necessary, students will be asked to provide the proof of the prerequisite. b. Limitations: • •

The COB Policy—No more than one “W” per course The Department of Accounting Policy—No more than two “Attempts” per accounting concentration courses including any grade, “W”, and “NC”.

III. Required Texts Intermediate Accounting, 5th ed., by Spiceland, et al. The address for the textbook website: http://highered.mcgraw-hill.com/sites/0073526878/student_view0/index.html Students are strongly encouraged to use a wealth of educational resources available on the website of the textbook to supplement their study and their textbook. Care should be taken, however, in the wise use of the Internet to avoid wasting time on irrelevant and distracting materials available on any web site related to the course assignments. IV. Optional Materials !

Student Study Guide to Intermediate Accounting, 5th ed., by Spiceland, et al.

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Students who plan to take the CPA examination could benefit from the following book by practicing the research techniques taught in the book: Financial Accounting Research System: Educational Version, 2008/9, Publisher: John Wiley.

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V. Recommended Readings Students are strongly urged to read one or more of the following periodicals on a regular basis: Accounting Horizons The CPA Journal Forbes Magazine

The Journal of Accountancy The Wall Street Journal Fortune Magazine

VI. Course Requirements

Three Examinations@100 One Current Events Summary One Financial Reporting Case (FRC) 3 best of 4 randomly collected homework @ 5 Total

300 Points 15 “ 30 “ 15 “ 360 Points

VII. Course Policies 1. Grading. The course grade will be based on the total points accumulated during the semester as follows: Total Available points: 360 Grade Range of Range of % Needed Pts. 94% 100% A 338 - 360 90% 93% A324 - 337 87% 89% B+ 313 - 323 83% 86% B 299 - 312 80% 82% B288 - 298 77% 79% C+ 277 - 287 73% 76% C 263 - 276 70% 72% C252 - 262 67% 69% D+ 241 - 251 63% 66% D 227 - 240 60% 62% D216 - 226 0% 59% F 212 - 215 Important Note: Regardless of the total points accumulated during the term, a student whose total score of the three examinations is less than 195 points will not receive a course grade higher than a “D”. 2. Limitations on the use of certain electronic devices and other tools. Students shall not use: ! Computers and/or calculators, cell phones, and other devices that are capable of storing text (i.e. non-numeric characters) while taking the examinations. ! Dictionaries and thesaurus while taking the examinations. ACCT 302 Summer 2009

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If such devices or tools are used during an examination, the user will receive an “F” (zero point) for that examination. Also, students may neither take any picture nor do recording of any form while attending the class. Violators will be asked to leave the class. 3. Make-up Tests: There shall be NO make-up examination except for very serious hardship that can be documented. 4. Attendance and punctuality are required. Your grade will be lowered by one level (i.e. from “A” to “B”; “B” to “C”; and so on) if you are absent for more than 2 (two) times. You should save the absence allowances for emergencies, illnesses and unforeseen events. It is your responsibility to inform the instructor of your presence if you arrive after a roll call is made. 5. Final Examination papers. These papers are not returned to students. The papers are only available for the students’ review during the first month of the semester following the semester in which the examination was taken. The papers will be discarded after this one-month review period. VIII. The Homework The Homework is absolutely necessary to prepare for the examinations. The homework should be attempted before and during the coverage of the related chapters. Avoid copying the solutions from the Solutions Manual. You will not learn very much if you do so. You will receive full credit for attempting the homework on your own even if the solution is incorrect. You should check your work against the Solutions Manual to learn from your mistakes. For the purpose of grading, each homework is made of all the assignments for one chapter. Four homework assignments will be collected randomly. Homework for each chapter is due after the lecture on that chapter is completed. Although students are encouraged to have study groups, however, the final draft of each homework should be individually prepared and should not be copied from another student. The homework should be neat and hand-written on one side of the normal college-ruled notebook paper. Twenty (20) percent of the points are assigned to the neatness and organization of the homework. Homework is only accepted at the time it is asked for and not later or after the class. No late homework will be accepted. Certain assignments marked by an ‘ * ‘ on the Assignments Schedule should be completed by using an electronic spreadsheet software. The format for such assignments should be professional, clear, business-like, and easy to understand as if it was to be given to a non-accountant client.

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IX. The Current Event Summary (CES) The CES is a two-page summary of the FASB’s rulings since the Financial Markets melt-down late in 2008. The main ruling was about the change in the application of the fair-value accounting. However, there have been rulings in other areas which should be included in the CES. A list of the sources used for the CES should be attached to the CES as a 3rd page. Late CES’s will be penalized 20% per weekday. The Format of the CES: CREDIT.

FOLLOWING GUIDELINES MUST BE FOLLOWED FOR THE REPORT TO RECIVE FULL 1. Place student’s name, course No., and term (e.g. Fall XX) on the top right-hand corner. 2. Place the article title and its source (reference) centered on top of the first page. The source should include: the author(s)’ name(s), the name of the publication, date of the publication, and page numbers 3. Type-written; double-spaced; 8 1/2 x 11" paper, using font #12 ONLY. 4. Must not exceed two pages AND must not be too brief; no more than one (1) inch margin all around. 5. Must be free from typographical and grammatical errors. 6. First paragraph of the CES should clearly state the purpose of the article. The last paragraph should include the conclusion of the article. 7. A legible and complete copy (not the original) of the source article should be attached to the CES. Staple all papers. No cover of any sort may be used. Due Date: See the Assignments Schedule

X. The Financial Reporting Case (FRC) This is a research case based on real-world financial information of a publicly traded company. Instructions for the case will be distributed early in the term. Late cases are penalized 20% per weekday. Due Date: See the Assignments Schedule XI. Important School Policies and other information: University policy is that withdrawals are permitted only for serious and compelling reasons. In addition, College of Business policy prohibits students from withdrawing from the same course more than once for any reasons. Students must enroll in classes by the fourth week of the semester. Students will not be permitted to add later even if they have attended all classes, taken all exams, and otherwise completed all course requirements Students with disabilities who need reasonable accommodations are encouraged to contact the instructor. The Disability Programs and Resource Center is available to facilitate the reasonable accommodations process. ACCT 302 Summer 2009

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Acct. 302.01 Prof. M.N. Tavakolian, Ph. D., CMA

Assignments Schedule Summer 2009

Note: All assigned problems and cases for each chapter should be attempted on a timely basis before and during the coverage of the chapter. Date Reading Assignments Written Assignments P=Problems; C: Cases July 14 Orientation and Overview P: 1, 3. 7, 9, 10 Ch. 12—Investments C: 5 July 16, 21

Ch. 14. Bonds and Long-term Notes

P: 5*, 8, 15, 19, 21 C: 6, 8

Feb. 21, 23

Ch. 15—Leases

July 23 July 28

First Examination (Ch 12, 14, and part of Ch. 15) Ch. 16—Income Tax Allocation

P: 2, 5, 3, 9*, 16 C: 1, 2, 5

July 30

Ch. 17—Pensions & Other Post-retirement Benefits

August 4

Second Examination (Bal. of Ch. 15, Ch. 16 and

P: 1, 3, 5, 7, 10 C: 11, CPA Simulation 16-1** P: 3, 4, 7,13*, 17 C: 6, 9 CPA Simulation 17-1**

17)

Aug. 4, 6

Ch. 18—Shareholders’ Equity

Aug. 6, 11

Ch. 19-Stock-based Compensations & Earning Per Share

August 11

Ch. 21: Statement of Cash Flows

Aug. 13

Final Examination (Coverage TBD)

CES and FRC Due Aug. 6

P: 1, 2, 5*, 8, 10 C: 4, 8 CPA Simulation 18-1** P: 2, 3, 10, 12, 14 C: 6, 16 CPA Simulation 19-1** P: 1, 3, 9, 10 C: 2, 4, 7 CPA Simulation 21-1**

(*) MUST be completed using an electronic spreadsheet software. (**) CPA Simulations are not required Homework. They are recommended for those who plan to take the CPA examination.

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